Solana Co-Founder Suggests Bitcoin Should Adopt Proof-of-Stake
Solana co-founder Anatoly Yakovenko said last Wednesday that Bitcoin needs to migrate to proof-of-stake if it is to maintain its long-term utility. Yakovenko explained that the current high power consumption may not support the network for a long time.
Elsewhere, unsecured loan issuer Maple Finance shared news of the launch on Solana. Details below:
Maple Finance Announces $45 Million Pool Alongside Launch on Solana
Maple Finance last week announcement its new multi-channel status after its launch on Solana. The institution, which lends to institutions, also revealed a $45 million fund to spur economic growth in Solana’s broader ecosystem, with plans to expand that pool to $300 million from here the end of the year.
The fund saw participation from several entities, including USDC issuer Circle, lender X-Margin and digital asset platform Coinshares. A number of Solana native projects have participated in populating this pool with the first multi-chain capital market solution.
Maple Finance aims to integrate its on-chain capital market infrastructure on Solana. Maple Solana chief Quinn Barry said they intend to bring more than $300 million in cash to Solana over the next three months. Barry also said the solution would aim to expand the range of borrowers it serves to include real loans, protocols and decentralized autonomous organizations (DAOs).
He added that the plan also calls for X-margin, Maple Solana’s first pool delegate, to have TVL in excess of $300 million by the end of the year.
An attractive factor for institutional investors is that Maple Finance enacts KYC/AML requirements, unlike many DeFi lending protocols. It would be interesting to see how this develops as Maple Finance is now not only the leading multi-chain capital solution but also the leading issuer of unsecured SOL loans.
Bitcoin must become proof-of-stake, says Solana co-founder
Talk to CNBC Kate Rooney, co-creator of Solana, said Bitcoin has worked quite well as a store of value so far. Yet he expressed skepticism on the largest digital asset token continuing into the future in this role if it is not to change. He explained that a move would allow the network to set aside the environmental concerns currently associated with it.
Yakovenko added that building a PoS system would be efficient and provide the same level of protection as the current system. Bitcoin’s use of PoW to avoid double spending in the beginning worked very well. However, with the evolution and large-scale adoption of the grid, the power requirements of mining have increased significantly, which has led to the current situation where power consumption is a concern.
Calls for Bitcoin migration are not new. In late March, Ripple Labs co-founder Chris Larsen spear a campaign – “Change the code, not the climate” – to pressure major Bitcoin developers and miners to adopt a more energy-efficient consensus mechanism.
Larsen’s proposal could theoretically happen in two ways. One is a soft fork to keep Bitcoin as a single blockchain but on PoS, or second, a soft fork to create two layers – the proof-of-stake chain and the current layer kept in a proof-of-work.
Ripple’s executive campaign is using Ethereum’s planned transition to proof-of-stake as a yardstick, but with BTC mining so incentivized, a majority is unlikely to vote in favor of it. ‘a change. Moreover, mining will only become more lucrative over time, and with bitcoins being often strict adherents to Satoshi Nakamoto’s law, a deviation seems even more unlikely.
To learn more about Solana, check out our Investing in Solana guide.